Securities regulators warn about risks of trading cryptocurrency

The Canadian Securities Administrators (CSA) has issued a warning to investors and dealers about futures contracts involving cryptocurrencies, such as the digital currency bitcoin. While such contracts may be traded on regulated exchanges and cleared by regulated central counterparties, cryptocurrencies carry a high level of risk unsuitable for all investors, they cautioned.

Louis Morisset, chair of the CSA“More specifically, the underlying value of these futures contracts is based on trading occurring on markets for cryptocurrencies which are largely unregulated,” said Louis Morisset, chair of the CSA....